Human resources consulting firm ECA International has released its annual MyExpatriate Market Pay Survey results, showing that Hong Kong has ranked fifth in the global expatriate annual pay and benefits packages rankings for the past year. However, the overall value has decreased by 2 percent compared to 2021.
According to the report, the total value of the overall package for expatriate employees in Hong Kong is US$278,00, with cash salaries and benefits costs decreasing by US$2,400 and US$1,600, respectively.
ECA International’s Asia-Pacific Regional Director, Lee Quane, stated that Hong Kong experienced an increase overall in 2021, but the decline in salaries in 2022 caused the overall package value to drop again. While many regions saw an increase in benefit costs, Hong Kong’s cash salaries declined, reducing the overall cost of the pay and benefits package. Additionally, the strong performance of the Hong Kong dollar led to a three-place rise in the rankings. At the same time, other regions experienced currency devaluation, resulting in a decrease in the value of the compensation and benefits packages.
The report mentioned that compared to the previous year, cash salaries for most expatriate employees in the surveyed Asian regions, including Japan, South Korea, China, and Taiwan, had decreased this year, leading to a decline in the overall pay and benefits package value, calculated in US dollars, in over half of the regions surveyed.
On the other hand, Singapore saw a 4 percent increase in the value of its pay and benefits package in 2022, reaching US$258,800. The higher rental costs in Singapore drove a 9 percent increase in benefit costs, making it the region with the highest increase in benefit costs in the Asia-Pacific region and elevating its global ex-pat employee pay and benefits ranking by six places to 16th.
China maintained its ranking, coming in third in the Asia-Pacific region and fourth globally, just behind Japan and India. However, expat employees stationed in mainland China experienced a 5 percent decline in cash salaries, calculated in U.S. dollars, compared to the previous year. Mr. Quane explained that although the Chinese yuan performed strongly against major currencies compared to 2021, the cash salaries of most expatriate employees are calculated in other currencies, resulting in an average decline when converted to yuan.
